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In an effort to counter its ongoing decline in active users, Tinder is set to introduce AI-powered features designed to enhance discovery and matching. The Match Group-owned dating app hopes that these additions will offer an alternative to its signature swipe feature, which has defined online dating for years.
In its Q4 earnings report, Match Group emphasised the implementation of AI-curated recommendations as a means to provide more “personalised and engaging matches.” During the earnings call, Match Group’s Chief Financial Officer, Gary Swidler, underscored that the new feature is intended to enhance, rather than supplant, the swiping functionality.
“We want to see a significant number of people engage with that feature and give it a try … We also want to see improvement in quality matches,” Swidler said. “We want to see that product really deliver for people in terms of enhanced quality matches that will improve the perception of the product, which should help us drive user growth.”
Alongside AI-powered matching, Tinder has also rolled out AI Photo Finder, a feature launched last year that helps users select their best profile pictures.
Tinder implemented AI features into its services while users within the dating space along with the entire dating app market experienced increasing levels of disinterest. Young singles between 18 and 34 have developed a strong dislike for online dating because they fear for their safety while also missing real-time connections and understanding that seemingly unlimited options do not equal superior matches.
Tinder maintains declining user numbers across its monthly active user base throughout recent months. During the period from October to February Tinder maintained a monthly active user (MAU) drop of 10% followed by a reduced annual-year-over-year decline of 9% and a further decrease to 8% in January. Tinder reported an 8% user decrease during January but executives presented this number as evidence that their platform was stabilizing.
The direct revenue stream for Tinder missed internal financial targets when it recorded $476 million revenue which fell under the expected range of $480-$485 million.
Leadership Shift and AI-Driven Future
As part of its turnaround efforts, Match Group has appointed Spencer Rascoff, co-founder of Zillow Group, as its new CEO. Rascoff remains optimistic about AI’s potential to revitalize online dating.
“This Cambrian explosion in AI is going to allow Match Group to have the same kind of business inflection that the shift from desktop to mobile created for our category and other categories around 10 years ago,” Rascoff said. The company leader noted that we share similar potential with apps that use AI to enhance engagement while retaining users.
Despite maintaining a positive outlook Match Group released earnings during Q4 which fell short of analyst predictions by reporting 82 cents per share instead of the expected 84 cents. The company achieved better-than-expected results in Q4 with $860 million revenue yet this performance indicated a 0.7% yearly decrease.
Match Group projects Q1 2025 revenues to fall between $820 million and $830 million because of decreased user activity on Tinder.
The release of AI-driven matchmaking features in Tinder prompts uncertainty about their power to revive user engagement while raising questions about a possible transformation of online relationship development standards.
